Western provinces to form a common market

Publication: 

Vancouver Sun

Date Published: 
Friday, 30. April 2010

Three premiers head on trade mission to Japan and China in May

By Derrick Penner

Canada's three westernmost provinces are betting there will be economic benefits in setting themselves up as a common market through the reconciliation of regulations among themselves and cooperation on international trade initiatives.

British Columbia Premier Gordon Campbell, Saskatchewan's Premier Brad Wall and Alberta's Premier Ed Stelmach signed the New West Partnership agreement Friday in Regina, a follow up from a promise they made in a joint cabinet meeting held in Vancouver a year ago, which will unroll cooperative efforts from 2011-13.

It will start as the three premiers conduct a joint trade mission to Japan and China in May.

The next step will see the three provinces enter into a common procurement system for tendering purchases on some $8 billion in annual spending between them, in areas such as pharmaceuticals and school supplies, starting in 2011.

And along the way, the provinces have agreed to reconcile regulations in transportation, labour, business registration and financial services through 2012 and 2013.

Campbell added that the provinces have also vowed to cooperate on research and development initiatives to make sure they reinforce what each province is doing and they don't duplicate one another.

"We should not forget that a marketplace of nine million people has far more power, both negotiating power in purchasing and maximizing benefits of marketing themselves internationally, than a marketplace in British Columbia of 4.4 million people," Campbell said in an interview following the announcement.

Stelmach said if they are able to save money on procurement, that will give the provinces the ability to keep taxes competitive in order to attract international investment.

In answer to a question of how the benefits of the agreement will be measured, Campbell said residents of the three provinces "will see direct benefits" from things such as a common strategy for pharmaceutical purchasing.

On the trade front, Campbell said, "what you really have to do is listen to international investors when they come here."

For instance, Australia's high commissioner to Canada expressed enthusiasm in investing in the west through the Pacific Gateway, Campbell said.

In B.C., NDP intergovernmental affairs critic Guy Gentner said he would have liked to have seen broader consultation with the public on the agreement's goals and engage in some discussion on its necessity.

"Are there these severe boundaries to trade [between provinces]? I don't necessarily think so," Gentner said.

depenner@vancouversun.com

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